Chapter 3: Q23E (page 137)

Jurassic Park Co. prepares monthly financial statements from a worksheet. Selected portions of the January worksheet showed the following data.
JURASSIC PARK CO.
Worksheet (PARTIAL)
For The Month Ended Jan. 31, 2017

Trial Balance
Adjustment
Adjusted
trial balance
Account Titles
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Supplies
3,256
a) 1,500
1,756
Accumulated Depreciation—Equipment
6,682
(b) 257
6,939
Interest Payable
(c) 50
150
Supplies Expense
(a) 1,500
1,500
Depreciation Expense
(b) 257
257
Interest Expense
(c) 50
50
During February, no events occurred that affected these accounts. But at the end of February, the following information was available.
Supplies on hand $715
Monthly depreciation $257
Accrued interest $ 50
Instructions
Reproduce the data that would appear in the February worksheet, and indicate the amounts that would be shown in the February income statement.

Short Answer

Expert verified

Worksheet is prepared in step 2.

The following accounts and amounts would be shown in the February Income statement:

Supplies expense $1,041
Depreciation expense $257
Interest expense $50

Step by step solution

Meaning of Financial statements

The income statement, also known as a profit and loss statement, is a record made by the management of a company that records the company's income, expenses, and net gain or loss for a specific period.

Reproducing the data that would appear in the February worksheet and indicated in the income statement

JURASSIC PARK CO. Worksheet (PARTIAL) For The Month Ended February 2017
	Trial Balance		Adjustment		Adjusted trial balance		Income statement		Balance Sheet
Account Titles	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.
Supplies	1,756			(a) 1,041	715				715
Accumulated Depreciation—Equipment		6,939		(b) 257		7,196				7,196
Interest Payable		150		(c) 50		200				200
Supplies Expense			(a) 1,041		1,041		1,041
Depreciation Expense			(b) 257		257		257
Interest Expense			(c) 50		50		50

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ROLLING HILLS GOLF INC.TRIAL BALANCESEPTEMBER 30, 2017
	Unadjusted		Adjusted
	Dr.	Cr.	Dr.	Cr.
Cash	\( 6,700		\) 6,700
Accounts Receivable	400		1,000
Prepaid Rent	1,800		900
Supplies	1,200		180
Equipment	15,000		15,000
Accumulated Depreciation—Equipment				\( 350
Notes Payable		\) 5,000		5,000
Accounts Payable		1,070		1,070
Salaries and Wages Payable				600
Interest Payable				50
Unearned Rent Revenue		1,000		800
Common Stock		14,000		14,000
Retained Earnings		0		0
Dividends	600		600
Service Revenue		14,100		14,700
Rent Revenue		700		900
Salaries and Wages Expense	8,800		9,400
Salaries and Wages Expense	900		1,800
Rent Expense			350
Depreciation Expense			1,020
Supplies Expense			470
Utilities Expenses			50
Interest Expense	\(35,870	\)35,870	\(37,470	\)37,470

Short Answer

Step by step solution

Meaning of Financial statements

Reproducing the data that would appear in the February worksheet and indicated in the income statement

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